The shift to a knowledge economy has led to new requirements to enhance productivity. The workspaces of the knowledge economy must be flexible and responsive to the work being done; a ‘one-size-fits-all’ approach is not effective. The workspace design should be based on both the present and future goals. There are different types of employees and teams which have different needs, thus workspaces should be designed to accommodate such differences. It is also essential that employees have a comfortable environment to enhance productivity. According to this paper, creating an effective work environment in the knowledge based economy is based upon technology, human resources, and facility design.